Ifrs Paper
Dick’s Sporting Goods
IFRS Conversion
Introduction Dick’s Sporting Goods is a sporting goods retailer headquartered in Pittsburgh, Pennsylvania. Dick’s has 451 stores nationwide and 81 Golf Galaxy stores. Dick’s Sporting Goods was founded by Richard Stack in the early 1960s. This paper is focused on the notes of the consolidated financial statements which are changed from U.S. GAAP to the IFRS standards.
Financial Statement Presentation First, on the 2011 Annual Report of Dick’s Sporting Goods page 51, the title Balance Sheet will need to be converted to Statement of Financial position (IAS 1.60). Also the presentation of the Balance Sheet/Statement of Financial Position will need to be changed. Both the Balance Sheet and Statement of Financial Position serve the same ultimate purpose of listing assets, liabilities, and shareholder’s equity at a certain point in time; however, the order of the accounts will be different. Dick’s Sporting Goods will need to present the assets and liabilities in order of long-term, than short-term. The order of assets and liabilities will have to be presented in the order of non-current assets, current assets, shareholder’s equity, non-current liabilities, and current liabilities. GAAP orders the assets and liabilities in order of liquidity, but the Statement of Financial Position method of ordering assets and liabilities favors from an investor’s perspective. The Balance sheet is “outdated” as it was mostly viewed by banks and creditors. The Statement of Financial Position is more relevant as it emphasizes elements important to creditors who are the primary users today. When it comes to classifying assets and liabilities as current or non-current, assets and liabilities can only be classified as current if they come due within one year under IFRS standards whereas U.S. GAAP requires the longer of one year or the operating cycle (IAS 1.61).
Comprehensive Income Dick’s Sporting Goods reported comprehensive income in a
IFRS Conversion
Introduction Dick’s Sporting Goods is a sporting goods retailer headquartered in Pittsburgh, Pennsylvania. Dick’s has 451 stores nationwide and 81 Golf Galaxy stores. Dick’s Sporting Goods was founded by Richard Stack in the early 1960s. This paper is focused on the notes of the consolidated financial statements which are changed from U.S. GAAP to the IFRS standards.
Financial Statement Presentation First, on the 2011 Annual Report of Dick’s Sporting Goods page 51, the title Balance Sheet will need to be converted to Statement of Financial position (IAS 1.60). Also the presentation of the Balance Sheet/Statement of Financial Position will need to be changed. Both the Balance Sheet and Statement of Financial Position serve the same ultimate purpose of listing assets, liabilities, and shareholder’s equity at a certain point in time; however, the order of the accounts will be different. Dick’s Sporting Goods will need to present the assets and liabilities in order of long-term, than short-term. The order of assets and liabilities will have to be presented in the order of non-current assets, current assets, shareholder’s equity, non-current liabilities, and current liabilities. GAAP orders the assets and liabilities in order of liquidity, but the Statement of Financial Position method of ordering assets and liabilities favors from an investor’s perspective. The Balance sheet is “outdated” as it was mostly viewed by banks and creditors. The Statement of Financial Position is more relevant as it emphasizes elements important to creditors who are the primary users today. When it comes to classifying assets and liabilities as current or non-current, assets and liabilities can only be classified as current if they come due within one year under IFRS standards whereas U.S. GAAP requires the longer of one year or the operating cycle (IAS 1.61).
Comprehensive Income Dick’s Sporting Goods reported comprehensive income in a